Gold has been bullish since October last year when it reversed above $1,600 and climbed to %2.070 at the beginning of May. Although buyers failed to p
Gold has been bullish since October last year when it reversed above $1,600 and climbed to %2.070 at the beginning of May. Although buyers failed to push the price above the all-time high and the price reversed lower. But, retraces lower have been finding support and the last pullback below $1,900 found decent buying pressure.
The price formed two doji candlesticks down there on the weekly chart, which are bullish reversing signals after the retreat, and in the last two trading days we have seen two decent bullish candlesticks. Yesterday, Gold surged by over 1%, following a similar climb on Monday, reaching a level not seen in more than a month as it climbed above $1,985. This increase was supported by a weaker USD and declining Treasury yields, after the softer retail sales headline for June. Investors are speculating that recent economic indicators in the United States may prompt the Federal Reserve to halt its ongoing interest rate hikes after this month’s hike.
Discussions surrounding the potential introduction of a new gold-backed currency by the BRICS countries, which include Brazil, Russia, India, China, and South Africa helped the sentiment for Gold initially yesterday, although that’s very vague. Furthermore, the softening inflationary pressures in the United States economy have also contributed to the increased demand for Gold. As inflationary pressures subside, investors may view Gold as an attractive option to protect their wealth from the eroding effects of inflation and as a hedge against economic uncertainties.
The spot Gold price rose to $1,984.39 per ounce, reaching its highest value in more than a month. Similarly, U.S. Gold futures saw a 1.5% increase, reaching $1,985.20. The rise in Gold prices indicates that investors are seeking safe-haven assets due to the uncertainty surrounding the trajectory of the U.S. economy and the potential impact on interest rates set by the Federal Reserve. So, Gold is bullish and we have turned long on XAU, opening a buy signal yesterday while today we will look for retraces lower in order to go long again.
GOLD
www.fxleaders.com